Advisers’ calls for an income option in AJ Bell’s Managed Portfolio Service has prompted the company to launch four new portfolios.

The fresh offerings are targeted to “provide a specific level of income” and will be particularly relevant to income drawdown clients, the firm said.

This option would suit a significant number of their clients, advisers told the provider.

These come with an annual management charge of 0.15% plus VAT, which Kevin Doran, AJ Bell chief investment officer, claimed made the service “one of the best value in the market”.

Mr Doran said: “The search for income remains a key investment priority for many investors, particularly in the extended low interest rate environment and with many more people remaining invested in retirement and utilising the new pension freedoms.

“Advisers have told us that an income option in the MPS would suit a significant number of their clients and we are pleased to be able to launch these four new portfolios for them.

“They can choose from capital or inflation protection with a target yield of 4% and as with the rest of the MPS, there are both passive and active options.”

Income 1 has a target yield of 4% and aims to offer long term capital protection. The passive portfolio has an underlying OCF of 0.34% and the active portfolio has an underlying OCF of 0.66%.

Income 2 has a target yield of 4% and aims to offer long-term inflation protection. For those investors wary of the impact of potentially rising interest rates on bonds, the Income 2 portfolio has no exposure to bonds. The passive portfolio has an underlying OCF of 0.35% and the active portfolio has an underlying OCF of 0.73%.